GPPSS 2012-13 Financial State of The District - FINAL
GPPSS 2012-13 Financial State of The District - FINAL
GPPSS 2012-13 Financial State of The District - FINAL
Source Data
Michigan Dept. of Education, Bulletin 1014
Compensation
Direct compensation is salary and any additional payments made to employees, governed by contract
School Funding
State dictates per pupil operating revenue
Health care is negotiated locally, but state laws affect Retirement rate (MPSERS) and FICA are non-negotiable locally.
Indirect compensation is net health care, FICA and state mandated retirement (MPSERS)
If Fund Equity drops below 10%, compensation is reduced proportionally. Allows the district to make investment decisions guided first by best interests of students, not compensation or budgets
GPPSS
55.9% 47.4%
Operation Maint.
Transport.
Enrollment
Operating Revenues Local State Federal Total Expenditures* Basic Instruction Added Needs Instruction Instructional Support Administration Operations & Maintenance Transportation Total Revenues less Expenditures
$ $ $ $
$ $ $ $
82 23 555 42
114 84 655 76
$ $ $ $ $ $ $ ($ 5
$ $ $ $ $ $ $ ($
Good news, bad news story of salary compensation and pupil to teacher ratios
2004
Total Operating Revenue per Pupil $ 11,028 $
2011
11,647
$
$ $
6,536
2,645 66,799 20.64%
$
$ $
7,448
2,918 80,566 28.1%
18
90 7
26
60 5
22.0 18
23.0 20
144 3
211 3
In 2010, the 76th ranked teacher salary in Michigan was $67,380 (Lakeshore Schools) which is 16% lower than our $80,566 average.
6
(Source: Michigan Dept. of Education)
$13,000
$12,500 $12,000 $11,500 $11,000 $10,500 $10,000 2008 2009 2010 2011 2012 2013 2014 2015
$110.0
Annual Rev. , Exp. in Millions $107 $105.0 $100.0 $2.0 $95.0 $90.0 $85.0 $80.0 2008 2009 2010 2011 ($7.6) 2012 2013 2014 ($0.1) ($3.2) ($3.1) ($3.9) $5.0
$6.9
$8.0 $6.0
Annual Delta in Millions $4.0 $2.0
Total Revenue
Total Expenses
Annual Delta
Projected Total compensation by employment group as percentage of total General Fund expenditure
9
95.0%
90.0% 85.0% 80.0% 75.0% 5.5% 3.1% 4.4% 4.0% 5.2% 3.0% 4.6% 4.1% 5.4% 3.1% 4.6% 4.2% Technology Exec Admin NIS Parapros
70.0%
65.0% 60.0% 55.0% 50.0%
TA's
Clerical Plant Bldg Admin Teachers
65.7%
66.1%
66.8%
2012
2013
2014
30.0 Ratio of Employees to Students 28.0 26.0 24.0 22.0 24.7 23.4 24.4 26.2 26.0 26.1
25.8
20.0 18.0
16.0 14.0 12.0 10.0 14.2 13.8 14.1 14.3 14.3 14.3 14.3 14.3
8,300 8,200
8,100 8,000 7,900 7,800
2008
2009
2010
2011
2012
2013
2014
2015
Enrollment
Student Enrollment
26.5
$25,000
$20,000 Fund Equity (in $000s) $15,000
25.0%
20.0% 15.0% Fund Equity as % of Expenditures
$10,000
$5,000 $0 2008 2009 2010 Value 2011 2012 2013 2014 2015 % of Expenditures
10.0%
5.0% 0.0%
$14.0 $12.0
$1.7
$1.8 $1.2 $1.6 $1.9 $1.2 $1.7 $1.9 $1.2 $1.9 $2.0 $1.2 $1.7 $2.4 $1.6 $1.5 $2.3 $2.1 $1.2 $1.1 $1.5 $2.0 $1.1
$10.0
Per Pupil ($000s) $8.0 $6.0 $4.0
$1.2
$7.4
$7.8
$7.7
$7.2
$7.4
$7.1
$6.5
$6.3
$2.0
$0.0 2008 Direct Comp. 2009 2010 2011 2012 2013 All Other 2014 2015 Health Care Retirement/FICA Revenue/Pupil
Health Care
MPSERS/FICA
15% 20% 10% 13%
Other
80%
13%
17% 9%
15% 9%
17%
9%
60%
40%
60%
62%
63%
60%
63%
60%
20%
55%
53%
0%
2008 2009 2010 2011 2012 2013 2014 2015
Retirement costs are a function of state set rate applied to salaries. Salary reduction is only way to reduce retirement costs.
$120.0
Avg. Total Compensation in Thousands $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 2008 2009 2010 $16.4 0%
8%
Difference from 2008 baseline 6%
4%
$18.7
2% 0% -2%
$67.3
$68.0
$68.7
$66.9
$68.4
$58.9
-4%
-6% -8%
Direct Comp.
Health Care
MPSERS/FICA
Change in per pupil revenue vs. change in average total compensation per employee against 2008 baseline
15
7.3%
4.9%
2.3%
2.1%
-4.9%
-4.8%
-4.8% -5.8%
-4.8% -7.2%
-6.0%
-8.0% 2009 Revenue/Pupil 2010 2011 Avg. Total Compensation 2012 2013 2014
2015
Potential Employee Compensation Changes in the Context of our Communities' Changing Economy
16
Change in Median Household Income (2000 to 2010) Grosse Pointe City Grosse Pointe Farms Grosse Pointe Park Grosse Pointe Shores -15.7% -18.2% -7.8% -18.0%
Change in Per Capita Income (2000 to 2010) -30.9% -16.5% -17.8% -10.5%
-16.4% -26.8%
-19.7% -32.1%
Source: U.S. Census Bureau, American Community Survey via Southeast Michigan Council of Governments (SEMCOG, www.semcog.org)
Current Path
Salaries scale proportionally to revenue No change in student to teacher ratio 10% projected reduction in direct compensation over three years
Without
Large class sizes Reduced programming
Outsourced custodians
Higher student fees Schools of Choice
Enrollment Added Needs Instructional Costs Basic Instructional Costs Staff Development / Substitute Costs
GPPSS loss of students is out of alignment with like districts, even those not reliant on School of Choice.
GPPSS cost per pupil rising dramatically higher/faster than benchmark and state average.
Currently this is a $1M annual expense. There has got to be a better way.